COVID-19 Novel Coronavirus

Walitt Solutions encourages appraisers, firms, vendor management companies, lenders, and other interested parties to continue to monitor changes and resources in the valuation industry related to the COVID-19 novel Coronavirus and impacts of the national emergency. Below are resources:

Health Resources

World Health Organization

Centers For Disease Control and Prevention

Appraisal Reports

In many cases, FHA, USDA, VA, Fannie Mae, and Freddie Mac are allowing the use of appraisals with inspections that vary from the typical level of inspections pre-typed on the lending appraisal forms. Appraisers and lenders must be aware of the different requirements in the temporary policies of FHA, USDA, VA, and Fannie Mae/ Freddie Mac:

From the notice: “Mortgagees are reminded that Exterior Appraisal forms Fannie Mae 2055 and Fannie Mae 1075 are not FHA approved forms and are not compatible with FHA’s Electronic Appraisal Delivery (EAD) portal.” The model certification documents require the usage of 1004, 1073, 1025, 1004C. Consult all related materials for full details.

USDA (RD) Appraisals

From the notice: “For purchase and non-streamlined refinance transactions, when an appraiser is unable to complete an interior inspection of an existing dwelling due to concerns associated with the COVID-19 pandemic, an “Exterior-Only Inspection Residential Appraisal Report”, (FHLMC 2055/FNMA 2055) will be accepted.” Consult all related materials for full details.

Fannie Mae and Freddie Mac Appraisals

See Freddie Mac’s Bulletin 2020-05 for temporary policy details, FAQs, Scope/ Certification changes, and other details; and see Bulletin 2020-08 for additional information. Go to Freddie Mac’s “Covid19 Resources” webpage for access to the all Bulletins and related information.

From the notices: Desktop Appraisals will be on 1004, 1073, 1004C, 1025. Exterior-Only Appraisals will be on 2055, 1075, 1004C, 1025. Consult all related materials for full details.

VA Appraisals

From the notice:“Exterior-Only Appraisal. This report option with enhanced assignment conditions will be completed on the FNMA 2055/1075 form. For manufactured homes and multi-unit (2- to-4 unit) properties, appraisers will use the 1004C or 1025 form. Appraisers are to boldly state “Per Department of Veterans Affairs, no interior inspection was provided due to COVID-19”.”“Desktop Appraisal Valuations. This report option will be completed on the FNMA 1004, 1073, 1004C, 2025 and the appraiser will be required to attach a copy of the provided Scope of Work (SOW) Exhibit A, certifications, and assumptions in all reports. Appraisers are to boldly state “Per Department of Veterans Affairs, no interior inspection was provided due to COVID-19”.”Consult all related materials for full details.

The Appraisal Foundation

On their Q&A page, The Appraisal Foundation has issued new Q&As related to property inspections and modifications to fixed language on appraisal forms.

Support

Walitt Solutions continues to provide services, including training on these issues, to vendor management companies, appraisers and firms, lenders, and other clients. Contact us at info@walitt.com with questions.